US tariff hike may impact Indian Pharma industry
New Delhi: The US government's proposed 25% tariff on imports of automobiles, semiconductors, and pharmaceuticals could have significant repercussions for India's pharmaceutical industry, which heavily depends on exports to the American market.
While India's semiconductor sector is still developing and is expected to see minimal impact, the new tariffs could pose challenges for drug manufacturers. The US is the largest market for Indian pharmaceutical exports, accounting for $8.73 billion in FY24, or 31% of the industry’s total exports, according to the Pharmaceuticals Export Promotion Council of India (Pharmexcil).
Leading Indian pharma companies such as Sun Pharma, Dr. Reddy’s, and Cipla derive a substantial portion of their revenue from the US market. In fiscal 2024, North America contributed 47% of Dr. Reddy’s total sales, 32% of Sun Pharma’s revenue, and 30% of Cipla’s earnings.
Pharmexcil’s director-general Raja Bhanu highlighted that Indian firms play a crucial role in the US pharmaceutical supply chain, supplying four out of every ten prescriptions filled in the country. However, Pharmexcil chairman Namit Joshi downplayed concerns, stating that the competitiveness of Indian generic drug exports would help mitigate the impact of any tariff hikes.
Currently, Indian pharmaceutical imports into the US are not subject to import duties. The proposed tariffs, if implemented, could alter the cost dynamics of the industry and affect profit margins for Indian drugmakers.
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UAE issues fresh emergency alert, says situation currently safe
Dubai/Abu Dhabi: Residents and visitors across the United Arab Emirates received a fresh emergency alert on their mobile phones stating that the situation in the country is currently safe.
The message, issued by the Ministry of Interior (MOI), thanked people for their cooperation and reassured them that conditions were stable.
“Thank you for your cooperation. We reassure you that the situation is currently safe. You may resume your normal activities while continuing to remain cautious and take the necessary precautions, and to follow official instructions. (MOI),” the alert read.
The notification was sent in both Arabic and English through the country’s emergency alert system.
The advisory comes after earlier alerts warning of potential missile threats amid rising regional tensions. Authorities have urged the public to stay cautious and follow official guidance.
